Netflix is among the most popular online streaming services across the globe, with over 151 million paid memberships. In the digital era, entertainment has been ‘much personalized’ than before. Netflix is targeting the users of handheld devices such as smartphones and tabs. In a price-sensitive market like India, minimizing the cost of the service can be an effective marketing strategy to grab more and more subscribers. Therefore, Netflix decided to launch a cheaper mobile-only subscription plan for Indian users. The company has announced this in a letter to shareholders. However, the video-streaming giant has not revealed the price of this soon to be launched mobile subscription plan in India.
In March 2019, the company launched the test run of a Rs 250 mobile-only subscription plan in India.
Today, Netflix is the most expensive OTT service in India, offering three monthly subscription plans, starting at Rs 500. This seems very expensive when compared to Amazon Prime monthly subscription at Rs 129, and Hotstar at Rs 299.
Netflix Mobile-Only Subscription Plan In India
The Entertainment Industry in India is always on a boom, as there are billions of people speaking various languages that are looking for entertainment availed in different formats. Online streaming is the latest trend and it is growing at a faster rate. Therefore, attracting more subscribers taking out the barriers of high prices could be a fruitful gesture for Netflix.
Now, when Netflix is making its mark through exclusive movies and series, people are already passionate about the unique service. Bringing down the prices can make a big difference to the market share of the company in this country.
Growth Potential for Cheaper Subscriptions in India:
When we consider the ongoing span of five years to study the growth in the number of smartphone users in India, the results would be astonishing. The number was somewhere around 468 billion in 2017, and by 2022, it may reach 859 billion. So, we can say that the number of smartphone users in India would be doubled within five years.
By 2022, smartphone users in India are expected to grow to 859 million. Again, the younger generation is capable and willing to ‘pay’ smaller amounts for uninterrupted and quality entertainment based on their likings.
Eventually, this growth prospect for Netflix is implying towards a new culture, where the filmmakers would compete to release their upcoming movies through an online platform like Netflix, and through a small subscription, the young crowd would be able to enjoy their favourite movies and shows just through some taps on the screen of smartphones.
The Impact of the Global Strategy
Most importantly, following a price hike, Netflix faced deduction in subscribers’ volume in the US early this year. Therefore, Netflix has taken a test run in a few countries with the lowered subscriptions and they are about to launch the cheaper mobile-only subscription in the third quarter of this year. So, the techno-savvy generation would have the privilege to enjoy their favourite movies and series paying a little less. Netflix can expect better growth in its market share in India and overall revenue as well.